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INTRODUCTION
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1.1 Background of the Study
The BBA program of Uttara University is designed to focus on theoretical and
Professional development of students who are open to take up business as a profession as
well as service as a career. Internship reports are a requirement for the completion of the
BBA program. This Internship reports is of knowledge and learning become perfect
when it is associated with theory and practice. For any business student only curriculum
activity is not enough for handling the real business situation, therefore, it is a
requirement after the completion of BBA to involve with a business organization to
prepare a report. So it is an opportunity for the students to know about the field of
business through the Internship program.
To fulfill this requirement I worked as an intern in Transcom Electronics Ltd. for the
Internship my preference was in electronics item. I submitted resume to different
institutions but appointed as an Internship trainee of the TEL. My assigned topic is
Financial Performance Evaluation of Transcom Electronics Ltd. which is assigned
by my supervisor in the department. On the basis of working experience in the Internship
period. I have prepared this report and I have tried my level best to relate the theoretical
knowledge with the practical work situation.
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1.3 Company Profile
Transcom Electronics Ltd (TEL) started its operation in 1993 by taking over PHILIPS
electronics and lighting business in Bangladesh. Today, the company is one of the
leading electronics and electrical company in the country, marketing and distributing
Consumer lighting, Consumer electronics, Home Appliances and Professional lighting
products from renowned brands through its extensive distribution and retail network.
Originated with tea plantations in 1885, TRANSCOM today is one of the leading and
fastest growing diversified business houses in the country employing over 10000 people.
Not many industrial groups in Bangladesh can claim a history of continuous business
pursuits stretching back over 125 years! Initially tea and later jute formed the backbone
of the family business. Although these are still part of the activities and contributing
marginally to the overall group turnover. Presently those early industrial ventures have
moved over to businesses involving high-tech manufacturing, international trading and
distribution, forming strong ties with a host of blue chip multinational companies. In
recent years, TRANSCOM has emerged as the largest media house in Bangladesh.
Originated with tea plantations in 1885 a history of strong business pursuits stretching
back over 125 years. Initially tea later jute formed the backbone of the family business.
Although these are still part of the activities, they contribute marginally to the overall
group turnover. These early industrial ventures have moved over to businesses involved
in high tech manufacturing, international trading and distribution, forming strong ties
with a host of blue chip multinational companies and growing. Not many industrial
groups in Bangladesh can claim a history of continuous business pursuits stretching back
over 125 years! Initially tea and later jute formed the backbone of the family business.
Although these are still part of the activities and contributing marginally to the overall
group turnover, presently those early industrial ventures have moved over to businesses
involving high-tech manufacturing, international trading and distribution, forming strong
ties with a host of blue chip multinational companies. In recent years, TRANSCOM has
emerged as the largest media house in Bangladesh.
Address:
GULSHAN TOWER, Plot# 31, Road# 53, Gulshan North C.A, Gulshan-2, Dhaka-1212
Phone : (+880-2) 58814663, 9848501, 58814701, 9848502, 9848518, 58814662,
58814698 Fax : (+880-2) 9884644.
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1.3.1 Brief Profile of the Company
Transcom Electronics Limited
Transcom Electronics Ltd (TEL) started its operation in 1993 by taking over PHILIPS
electronics and lighting business in Bangladesh. Today, the company is one of the
leading electronics and electrical company in the country, marketing and distributing
Consumer lighting, Consumer electronics, Home Appliances and Professional lighting
products from renowned brands through its extensive distribution and retail network
Transcom Digital is the outlet started in the early 2005 through which TEL is retailing
products directly to end consumers in the metro and urban cities. In 2008, the company
re-introduced itself as Transcom Digital as a multi brand, multi-category retailer
catering for all Electronics, Appliances and IT products. Today Transcom Digital
becomes the original outlet of TEL responsible for sales and providing all TEL
electronic/IT products to their valued customers. Currently it is successfully running with
48 outlets throughout the country and expects to increase the total outlet number
eventually. Moreover TEL has a strong Corporate Sales Team under Transcom Digital
for direct sales to the corporate clients.
Through the Electronics & Appliances Distribution Consumer Electronics, Home &
Domestic Appliances from global brands such as Samsung, Philips, Whirlpool and home
brand Transtec are sold throughout the country via a nationwide dealer network.
Currently there are about 165 electronics dealers covered under this network through
which Transcom Digital is retailing the following Electronics & Appliances:
Transcom Digital:
This is a new venture started in the early 2005 through which TEL is retailing products
directly to end consumers in the metro and urban cities. In 2008, the company re-
introduced itself as Transcom Digital as a multi brand, multi-category retailer catering
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for all Electronics, Appliances and IT products. Today Transcom Digital is successfully
running its business with 38 showrooms throughout the country and expects to increase
the total outlet number to 50 by the end of 2010.The Company has a strong Corporate
Sales Team under Transcom Digital for direct sales to corporate clients.
Projects: The Company has a strong and experienced project team handling PHILIPS
professional lighting projects.
Transcom Beverage:
The company is the exclusive PepsiCo Franchisee for Bangladesh. TBL owns and
operates modern plants in Dhaka and Chittagong for bottling the renowned soft drink
brands: Pepsi, 7Up, Mirinda, Slice, Mountain Dew, Pepsi Diet and 7Up Light. Their
vision is
To deliver sustained growth in Bangladesh and move towards dominant Beverage
Company, delighting & nourishing every Bangladeshi, by best meeting their everyday
beverages needs & stakeholders by delivering performance with purpose, through
talented people.
Transcom Distribution Co. Ltd.:
The largest independent distribution setup in Bangladesh with full infrastructural
facilities provided by a countrywide network of 23 branch offices along with one main
office, warehouses and delivery vans, directly servicing over 8000 outlets throughout the
whole country.
TDCL is an allied business company of TRANSCOM Groups responsible for
distributing multi-dimensional products across the country. The company started its
business with the distribution of quality pharmaceutical products manufactured
by ESKAYEF, NOVO NORDISK, SERVIER, ALLERGAN and consumer brands like
Frito Lay, Heinz, Wrigley, Mars, Energizer, Schick, L'Oreal, Garnier, ConAgra Foods,
McVities and Hemas. It started its diagnostic distribution division in 1993 by distributing
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laboratory equipments and reagents from Hettich (Germany), TREK Diagnostics
(USA) and Fortress(UK). It also distributes crude oil and oil products from Vitol.
Basically TDCL has three distribution divisions:
TDCL is an allied business company of TRANSCOM Groups with its three largest
distribution divisions:
1. For Pharmaceutical products-Pharma Division
2. For Diagnostics and clinical products-Diagnostic division and
3. Consumer Brands division.
TDCL has the largest independent distribution setup in Bangladesh with full infra
structural facilities provided by a countrywide network of branch offices with
warehouses and delivery vans. The company distributes-
1. TDCL-Pharma: Quality pharmaceutical products manufactured by SERVIER, NOVO
NORDISK and ESKAYEF.
2. TDCL-Diagnostic: Diagnostic and clinical products from VesaTREK (USA), Asys Hi-
Tech (Austria) and Shel lab (USA).
3.TDCL-Consumer Brand: TDCL also markets and distributes color cosmetics; skin and
hair care products from LOREAL Paris, MAYBELINE New York and GARNIER
Paris, Heinz, Lindt & Fritolay, the worlds number one potato chips is now being
exclusively marketed and distributed all over Bangladesh by TDCL.
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the necessity of cost effective electricity the TFL tech bulbs are populated and distributed
more and more everyday around the country, BLL became one of the leading TFL bulb
production houses
Bangladesh Electrical Industries Ltd:
BEIL is a leading producer of televisions and radios in Bangladesh and is the official
licensee of PHILIPS Electronics N.V. Holland. The company was incorporated in 1960
as a subsidiary of PHILIPS, Holland. In March 1993, PHILIPS sold its entire shares to
TRANSCOM.
Organogram:
Transcom
Electronics
7
Products of Transcom Electronics Ltd.
8
1.3.2 Description of Section
I have worked in Front desk and Office Section of Transcom Electronics Ltd.,
Mohakhali, Dhaka, Bangladesh. In this report, I will try to make an overall analysis
on all activities of Transcom Electronics Ltd., specially focuses on Financial prospect
of the branch as well as whole Company.
Internship program is the most important period for a BBA student. The duration of
internship program is 3 months, which carries a best learning process to know about
the organization and cope up the environment in such a way like professional
employees. The experience that got by an intern during the internship period will
make them more smart and professional in their future job sector. I was started my
internship from 1st March 2017 to 30th May, 2017 at Transcom Electronics Ltd.,
Mohakhali, Dhaka, Bangladesh.
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CHAPTER TWO
DESCRIPTION OF THE TOPIC
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2.1 Topic
Financial Performance Evaluation of Transcom Electronics Ltd.
2.1.1 Meaning of Performance Evaluation
In the Oxford Dictionary the word Performance means things that show how well or
badly in working and the word Evaluation means to form an opinion of the amount,
value, quality, of thins after thinking about it carefully.
When evaluating financial performance, certain must be consider. Transcom Electronics
Limited blew some of factors to the obvious factors that investors should consider and
outline the performance presentation standard, which now play a prominent role in
performance evaluation .In case of evaluating the financial performance of a Company
obvious factors are given blew.
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2.1.3 Objective of Financial Analysis:
In short, the main objectives of analysis of financial statements are to assess: the present
and future earnings capacity or profitability of the concerns, the operational efficiency of
the concern as a whole and of its various parts or departments, the short-term and long-
term solvency of the concern for the benefit of the debenture holders and trade creditors,
the comparative study in regard to one firm with another firm or one department with
another department, the possibility of developments in the future by making forecasts
and preparing budgets, the financial stability of a business concern, the real meaning and
significance of financial data.
The Liquidity of a business organization measured by its ability to satisfy its short term
Obligations as they come due. This ratio shows the current assets to current debt ratio.
This ratios are generally used by short term creditors like, suppliers. Under
liquidity ratios management uses those kind of ratios, they are as
follows:
Current Ratio
Quick Ratio
Inventory Turnover Ratio
Average Collection Period
Total Asset Turnover
Debt Ratio
Debt- Equity Ratio
Equity Ratio
Gross profit margin
12
2.2 Theoretical Framework
2.2.1 Concepts of Finance
Team of leading expert in quantities finance bring together cutting edge research and
solid knowledge of best practice in risk management though a wide range of consulting
and trading service. A branch of economics concerned with resource allocation as well as
resource management ,acquisition and investment .simply finance deals with matters
related to money and markets. To raise money through the issuance and sale of debt
and/or equity.
At present, we cannot imagine a world without Finance. In other words, Finance is the soul
of our economic activities. To perform any economic activity, we need certain resources,
which are to be pooled in terms of money (i.e. in the form of currency notes, other
valuables, etc.). Finance is a prerequisite for obtaining physical resources, which are needed
to perform productive activities and carrying business operations such as sales, pay
compensations, reserve for contingencies (unascertained liabilities) and so on.
Hence, Finance has now become an organic function and inseparable part of our day-to-day
lives. Today, it has become a word which we often encounter on our daily basis.
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2.3 Study framework
Topic selection, Data collection Analysis & Consultation with the supervisor
Report Preparing
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CHAPTER THREE
DATA COLLECTION AND
PROCESSING
15
3.1 Data Description
The report is descriptive in nature. To prepare a report gathering data is very important.
The information was collected from both primary and secondary sources of data.
Regarding the information required was collected within the organization from the
Transcom Electronic Ltd.
SOURCE OF DATA
PRIMARY SECONDARY
DATA DATA
Primary Source
Practical desk work.
Face to face conversation with the respective of Customers.
Direct conversation with customers
Face to face conversation with company managers and officers.
Discussion with my supervisor
Secondary Source
Personal interview
Journal
Website : www.transcombd.com/about.html
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3.3 Data Processing Methods
Collected information have then processed & compiled with the aid of MS Word, Excel.
Necessary tables have been prepared on the basis of collected data and various statistical
techniques have been applied to analyses on the basis of classified information. Detail
explanation and analysis have also been incorporated in the report.
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CHAPTER FOUR
RESULTS AND DISCUSSIONS
18
4.1 Financial Performance and Ratio Analysis of Transcom Electronics Ltd.
In short, the main objectives of analysis of financial statements are to assess: the present
and future earnings capacity or profitability of the concerns, the operational efficiency of
the concern as a whole and of its various parts or departments, the short-term and long-
term solvency of the concern for the benefit of the debenture holders and trade creditors,
the comparative study in regard to one firm with another firm or one department with
another department, the possibility of developments in the future by making forecasts
and preparing budgets, the financial stability of a business concern, the real meaning and
significance of financial data.
The Liquidity of a business organization measured by its ability to satisfy its short term
Obligations as they come due. This ratio shows the current assets to current debt ratio.
This ratios are generally used by short term creditors like, suppliers. Under
liquidity ratios management uses those kind of ratios, they are as
follows:
Current Ratio
Quick Ratio
Inventory Turnover Ratio
Average Collection Period
Total Asset Turnover
Debt Ratio
Debt- Equity Ratio
Equity Ratio
Gross profit margin
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4.2 Current Ratio:
Current Ratio
25000000
20000000
Axis Title
15000000
10000000
5000000
0
1 2 3 4 5
Current Ratio 0.73 1.11 1.17 1.15 1.38
Current Liability 3,385,850 1,851,205 1,409,727 1,313,393 717,069
Current Asset 2,464,125 20,603,325 1,643,107 1,506,071 988,093
Year 2016 2015 2014 2013 2012
20
4.3 Quick Ratio:
(Current Asset Inventory)
Quick / Acid Test Ratio =
Current Liability
Quick Ratio
10000000
9000000
8000000
7000000
Axis Title
6000000
5000000
4000000
3000000
2000000
1000000
0
Current Current
Year Inventory Quick Ratio
asset liability
Series5 2012 988,093 662,012 717,069 0.45
Series4 2013 1,506,071 0 1,313,393 0.42
Series3 2014 1,643,107 1,075,310 1,409,727 0.4
Series2 2015 2,063,325 1,303,637 1,851,205 0.41
Series1 2016 2,464,125 1,585,100 3,385,850 0.26
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4.4 Inventory turnover ratio:
Inventory Turnover
2.5
2
Axis Title
1.5
0.5
0
1,585,100 1,303,637 1,075,310 959,414, 662,012,
3,099,355 2,405,361 1,820,496 1,526,514 1,298,911
2016 2015 2014 2013 2012
Inventory Turnover 2 1.84 1.7 1.6 1.96
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4.4 Average collection period:
Account Receivable
Average Collection Period =
Average Sales per Day
50%
0%
6,519,639,234/360
5,090,318,113/360
3,900,732,314/360
3,089,746,417/360
2,534,174,981/360
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4.6 Total asset turnover ratio:
Sales
Total Asset Turnover =
Total Assets
8E+09
6E+09
4E+09
2E+09
0
1 2 3 4 5
Total Asset Turnover Ratio 0.85 0.99 1.01 0.98 1.18
Total Assets 7,691,601, 5,132,284, 3,851,369, 3,162,232, 2,154,993,
Sales 6,519,639, 5,090,318, 3,900,732, 3,089,746, 2,534,174,
Year 2016 2015 2014 2013 2012
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4.7 Debt Ratio:
Total Liabilities
Debt Ratio =
Total Assets
Debt ratio
Axis Title
1 2 3 4 5
Year 2016 2015 2014 2013 2012
Total Liabilities 3,732,993,864 2,160,813,2941,644,089,330 1,500,159,5771,500,159,577
Total Assets 7,691,601,900 5,132,284,2383,851,369,286 3,162,232,9342,154,993,391
Debt Ratio 0.49 0.42 0.43 0.47 0.7
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4.8 Debt-equity ratio:
Shareholders Debt-Equity
Year Long-term Debt
Equity Ratio
2016 347,143 3,958,608 0.088
2015 291,256 2,971,470 0.098
Debt-equity ratio
4500000
4000000
3500000
3000000
Axis Title
2500000
2000000
1500000
1000000
500000
0
1 2 3 4 5
Debt-Equity Ratio 0.088 0.098 0.106 0.112 0.126
Shareholders Equity 3,958,608 2,971,470 2,207,280 1,662,073 1,277,605
Long-term Debt 347,143 291,256 234,362 186,767 160,319
Year 2015 2014 2013 2012 2011
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4.9 Equity ratio:
Equity ratio
12000000
10000000
8000000
Axis Title
6000000
4000000
2000000
0
1 2 3 4 5
Equity Ratio 0.56 0.63 0.63 0.58 0.67
Total Assets 7,691,601 5,132,284 3,851,369 3,162,232 2,154,993
Total Equity 4,305,751 3,262,726 2,441,642 1,848,840 1,437,924
Year 2015 2014 2013 2012 2011
27
4.10 Gross profit margin:
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CHAPTER SFIVE
Findings, Recommendations Conclusion
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5.1 Findings of the Study
Transcom Electronics Limited is one of the leading companies with 4.74% market share
in the field of Electronics Product in Bangladesh.
1. Transcom Electronics Limited has long range of product lines for a lot of product
categories.
2. The export market of Transcom Electronics Limited is expanding rapidly.
3. Transcom Electronics Limited has a wide range of distribution network.
4. The present condition of this company is really good and it is improving day by
day.
5. Current ratio: We know that standard value of Current ratio is 2:1 . The companys
current ratio range is 1.38 to 0.73. So company position is good .
6. Quick ratio :We know , the standard value of quick ratio is 1:1 our company has a
quick ratio range is 0.26 to0.45 it is risky position .
7. Inventory turn over ratio : We know , the standard value of Inventory turn over
ratio is generally8tims . The companys inventory turnover ratio range is 1.60 to 2.
it is good position for Transcom Electronics Limited.
8. Average collection period : We know , the standard value of Average collection
period is 60 days to 90 days . The average collection period of the company range
is 27.67 to 40.10 which is very good for company .
9. Total asset turnover : We know , the standard value of Total asset turnover ratio is
2 times . The companys total turnover ratio range is 0.85 to 1.18 the company is
not desirable.
10. Debt ratio : we know that standard value of debt ratio is 1:1 . The companys debt
ratio range is 0.42 to 0.70 which is good position for company.
11. Debt equity Ratio : we know that standard value of Debt equity Ratio is 1:1
Our company debt equity ratio range is 0.088 to 0.126 which is good position .
12. Equity Ratio : We know the standard value of Equity ratio of equity ratio is 1.1
Our company 3.4 our company equity ratio range is 0.56 to 0.67 . It is Good
position for company.
13. Gross profit margin : We know the Standard value of Gross Profit margin is 20%
to 30% .The companys gross profit margin Range is 0.49 to 0.53 .Here the Gross
profit margin has Satisfactory level.
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5.2 Recommendations
After analyzing the overall study and findings, I can observe that though Transcom
Electronics Limited is doing well in almost every field, some major aspects should be
taken into consideration continuously to beat the competitors in all aspect of its
operation. Transcom Electronics Limited should take the following recommendations
into consideration:
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5.3 Conclusion
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CHAPTER SIX
INTERNSHIP EXPERIENCE
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6.1 Internship Position
I was given the opportunity to work in Transcom Electronics Ltd. for three months it was
part of my academic program. In the internship period I have no specific position. So I
have no fixed duties in the organization. I work under a manager and observed his
different types of activities. I prepared this report on the basis of that three months
observation. I have got various kind of experience of export procedure, Transcom
Electronics Ltd. systems, operations procedure, customer relationship etc.
Data collection: I had to go to the field for collecting various types of task related
information, which are very much essential for successful arrangement of a product.
Through field visit I had determine the total output regarding the expectation of a
Transcom Electronics Ltd. products.
Arraigning material for the in house meeting: There were a huge number if
meeting during my internship in my organization. I had to collect different types of
materials for those meetings.
Entry of information in office document and soft copy: I had to input office
documents and update the office document. Data entry and database management is
remarkable of them.
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6.3 Linkage between work-Internship topic
There few specific responsibilities I have performed. These are:
Back to Back L/C opening: Sometimes to complete export exporters have to buy raw
material and accessories from another supplier by opening Back to back L/C which is
back to back L/C. It is new credit in favor of another beneficiary. Sometimes beneficiary
seller of a credit himself is unable to supply goods specified in the L/C and required to
purchase from another supplier by opening second credit.
Working at Transcom Electronics Ltd. was a great experience for me. I have learnt many
things from them. From my little knowledge what I have observed and some
recommendations are as follows:
Boss and subordinates relationship: I observed that between boss and subordinate has
friendly relationship for some cases. But there are also some traditional boss exist whose
only need order and work. They just dont much talk with subordinate without any
works. But there are more leaders whose have power to control their subordinate with
motivation and caring.
Organizational culture and behavior: Organizational culture and behavior is well
maintained. In any organization there much more need ethical culture and behavior than
paper rules and regulation in Transcom Electronics Ltd. I saw that it is very good. Every
employee have positive attitude about their office culture and behavior.
35
REFERENCES
Book Reference
1. Accounting Principles, Kieso & Kimmel ninth edition 2008.
2. Accounting Principles, Syed Masud Hossain 2012 edition.
3. Annual Report of Transcom Electronics Ltd. 2012-2016
4. Baily & Mieres (Portfolio Management)
5. Principles of Managerial Finance by Lawrence J. Gitman
6. Financial Statement Analysis, Fifth Edition-Leopold A. Bernstein
7. Financial Management- Theory & Practice, 10th Edition- Eugenne F. Brigham
& Michael C. Ehrhardt
8. Jerry J. Weygandt, Accounting Principles 7th edition
9. S.Kevin (Portfolio Management)
10. Principal of finance Md. Haruner Rashid-4th Edition-2010- The Angel
Publication.
11. Financial Statement Analysis George Foster -2nd Edition (2009-2010)- Pearson
Education.
12. Principles of Managerial Finance by Lawrence J. Gitman
Websites:
1. www.transcombd.com/contact.html
2. www.google.com
3. www.wikipedia.com
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Appendix
Income Statement
Transcom Electronics Limited
Income statement
As at December 31, 2016
37
Balance Sheet
Transcom Electronics Limited
Balance sheet
As at December 31, 2016
38